Some guidance from the Internal Revenue Service:
What if I lose my job?
Severance pay and unemployment compensation are taxable, as are payments for any accumulated vacation or sick time. Public assistance and food stamps are not taxable.
What if I am searching for a job?
You may be able to deduct certain expenses you incur while looking for a new job, including travel, resume and outplacement agency fees. Moving costs may also be deductible.
What if I lose my home through foreclosure?
Under the Mortgage Forgiveness Debt Relief Act of 2007, taxpayers generally can exclude income from the discharge of debt on their principal residence or mortgage restructuring.
What if I can’t pay my taxes?
File your return by the April deadline and pay as much as you can. Also contact the IRS at 800-829-1040 to discuss payment options. The agency may be able to provide some relief, such as a short-term extension, an installment agreement or a compromise offer.
Source: Internal Revenue Service, ,,id=201853,00.html
